Voltage control and reactive power management are two facets of an ancillary service that enables reliability of the transmission networks and facilitates the electricity market on these networks. Both aspects of this activity are intertwined (voltage change in an alternating current (AC) network is effected through production or absorption of reactive power), so within this article the term voltage control will be primarily used to designate this essentially single activity, as suggested by Kirby & Hirst (1997). Voltage control does not include reactive power injections to dampen the grid oscillations; these are a part of a separate ancillary service, so-called system stability service. The transmission of reactive power is limited by nature (the typical reactance of a high-voltage transmission line can be an order of magnitude higher than its resistance), so the voltage control is provided through pieces of equipment distributed throughout the power grid, unlike the frequency control that is based on maintaining the overall active power balance in the system.
Generally, an increase in production of reactive power corresponds to higher line voltage, while increase of absorption of the reactive power lowers the voltage. In wholesale electricity market, the independent system operator, together with the owners of transmission lines, define the voltage schedule, a target value or a range of acceptable reference voltages for each generator (typically defined as voltage on the transmission bus). The schedule is typically used as a parameter for the automatic voltage control, although sometimes the control is using the target reactive power ("MVAR") or power factor as a setpoint.